Hillsdown sells assets

(First Edition)

Hillsdown Holdings has completed reorganisation of its British poultry interests with the sale of the assets of Cymru Chicken in Llangefni, North Wales, to Grampian County Food Group, Reuter reports.

Hillsdown said the consideration was not material in relation to its net assets.

The sale includes the Cymru frozen poultry processing plant and certain associated agricultural assets including 22 breeding and growing farms, a hatchery and a feed mill. The move will ensure the continued employment of Cymru's 348 employees.

Since the acquisition of the entire UK chicken interests of Unigate in February 1992 for pounds 8.5m Hillsdown has reduced its British poultry processing throughput from 3.3 million birds a week to under two million birds a week.

Hillsdown has invested an additional pounds 12m in its poultry processing operations, including a third processing line in Humberside.

The total acquisition and capital expenditure cost incurred in this reorganisation, however, has now been recouped through fixed asset sales and reductions in working capital.